IFC Invests $100 million to create jobs, boost growth in Egypt
London, April 2, 2019 (AltAfrica)-International Finance Corporation, IFC, a member of the World Bank Group, is providing up to $100 million in financing to the Middle East Glass Manufacturing Company (MEG), Egypt’s maker of glass containers.
The partnership is designed to support the firm’s capital expenditure program, create new jobs, and boost Egypt’s manufacturing sector.
IFC’s debt financing package will help MEG ramp up production of its containers, which are used by a variety of companies, from beverage makers to pharmaceutical firms.
This will help MEG expand its international footprint and continue to grow its annual exports. It will also help the company expand locally, and create and preserve thousands of jobs. The financing package is part of a larger effort by IFC to support Egypt’s manufacturing sector, which is a major employer and, through exports, a key source to foreign currency.
“Manufacturers like MEG are a crucial part of Egypt’s economy,” said Sahar Nasr, Egypt’s Minister of Investment and International Cooperation “Not only are they creating jobs and opportunities locally, but by branching out internationally, they are demonstrating the attractiveness of the Egyptian business environment and that Egyptian companies have the potential to make a mark on the world.”
Abdul Galil Besher, Chairman of MEG, said: “This investment is a testimony to our talented, high-performance workforce led by a disciplined, innovative management team who continues to drive our 38-year journey and constantly transform the business by providing all of our customers, in Egypt and in our export markets, with superior service and high-quality, competitively priced products.”
Manufacturers are a key source of skilled jobs in Egypt and have important linkages with businesses, large and small, across the country.
Dr Karim El Solh, Chief Executive Officer of Gulf Capital, a main shareholder in MEG, said “We have worked closely with the IFC across a number of transactions and, most recently, to finance MEG’s continuous expansion plans. The strategy of expanding the company aggressively across new geographies and into new product lines has firmly positioned MEG as a leader in the glass market in the Middle East and Africa. The company today has state-of-the-art production facilities and a strong management team and is well positioned to continue its impressive growth trajectory. This investment from the IFC highlights the increasing confidence in the broader Egyptian economy and the resurgence of foreign direct investments into the country.”
As well as the financing package, IFC’s advisory services arm will help MEG substantially reduce its energy consumption and greenhouse gas emissions. That is part of an IFC push to bolster resource efficiency in the manufacturing sector and help companies compete internationally.
“Our strategy in Egypt focuses on investing in companies with strong export potential, which boosts the local economy and helps create jobs,” said Tomasz Telma, IFC Global Director for Manufacturing, Agribusiness and Services. “Supporting a leading Egyptian manufacturer, like MEG, will ensure it continues to contribute to Egypt’s economic development.”
In fiscal year 2018, IFC invested $1.5 billion in Egypt’s private sector to help create jobs, improve local infrastructure, and boost economic growth. That figure, which includes funds mobilized from other investors, represents a record for IFC in Egypt. The investments have been geared towards helping private sector companies grow, expand and create jobs